KUALA LUMPUR (Feb 27): The Exporters’ Development Incentive Scheme, or “Skim Insentif Pemampanan Pengeksport” (SIP2) in Malay, announced in the revised Budget 2023 will strengthen businesses, as well as develop the business acumen of local entrepreneurs or exporters to international levels, Export-Import Bank of Malaysia Bhd (EXIM Bank) said.

“We look forward to helping exporters achieve their cross-border aspirations with these schemes aiding them,” president and chief executive officer Arshad Ismail said in a statement on Monday (Feb 27).

He said that EXIM Bank is set to offer exporters financing assistance under the RM1 billion SIP2 , namely the incentive for financing.

“The financing is given up to RM10 million, while the financing rate is reduced by 1.5% for up to seven years,” Arshad said.

He said the affordable funding rate would encourage exporters to find new markets for their products and further increase the capability of SMEs as exporting companies in the long term.

“It will also help exporters reduce their operating costs and at the same time, increase their income,” he said.

The revised Budget 2023’s allocation has been revised upward to RM386.14 billion, from RM372.3 billion in the earlier budget tabled in October 2022.

Out of this, management spending is expected at RM289.1 billion, while development expenditure is RM99 billion and RM2 billion is for unexpected expenditures.

In addition to that, the Ministry of International Trade and Development (Miti) welcomed the allocation of RM1.585 billion for the ministry and its agencies, which is focused on three key areas such as industry development, international trade, and domestic and foreign investment that remain crucial to the ministry in sustaining the economic growth momentum, improving the global supply chain and empowering Malaysia’s human capital development.

Among the main initiatives in the revised Budget 2023 for Miti to achieve its objectives are the easy loans and schemes for small and medium enterprises (SMEs) worth RM3.5 billion, which will be disbursed by various agencies, including EXIM Bank.

Get The Edge’s comprehensive coverage of the revised Budget 2023 here.